John Prescott, the deputy prime minister, will today dramatically drop his opposition to the education white paper after previous harsh criticism of the proposals. In a speech in his Hull constituency he will say he has received new assurances to make him believe the proposals can help working class children.

Mr Prescott's change of tack follows inch by inch talks with Tony Blair, his officials and the Department for Education. It was being stressed last night that neither Mr Blair, nor his deputy had caved in but sceptical backbenchers were demanding to see the details of the changes.

One Labour rebel, Jon Trickett, said: "There will have to be root and branch reform of the white paper. Nothing less will be acceptable".

Mr Prescott fuelled the unprecedented 100-strong backbench rebellion by criticising the white paper in the cabinet and then in a newspaper interview, where he expressed fears it would lead to middle class children monopolising popular schools, leaving working class children to fester in failure. He explained: "Since I was an 11-plus failure, since I do believe that produced a 'first-class/second-class' education system, I fear this is a framework that may do the same."

But it is believed he senses he has received assurances about future powers of local authorities to oversee schools and protect the interests of the wider community. He also believes there will be constraints placed in the bill on an admissions free-for-all by the new trust schools. Mr Blair is said to be planning to spend this weekend considering a range of concessions to bring back rebel backbenchers.

In the outline compromise discussed with leading rebels, local authorities will have a clear role in the supply and demand of school places, and the admissions code will be strengthened and enforceable. Councils will also be entitled to open community schools and the education department will have to draw up a register of approved sponsors for trust schools. Backbenchers fear that the planned external sponsors will be businesses with little education track record or wider concern for the local community.

Mr Prescott will also argue in his speech that new state-run independent schools should form links with local universities, to boost the number of working class children that go on to higher education.

He is eager to encourage a deal in Hull so the local university and further education college take more local secondary students. Hull's secondary schools have improved in recent years, but are still some of the worst performing in the country. Only 44% of its pupils receive the benchmark five top grade passes. The university is already encouraging secondary school students to attend summer schools and be mentored by Hull students.

Some of the outline concessions floated separately were welcomed by critical backbenchers, but rebel leaders were still urging the government not to go ahead with plans to publish the education bill before the recess on February 16, if no comprehensive compromise has been reached. Insiders believe that a "robust code" on admissions will be entrenched, possibly by order in council not in fresh legislation.

The education select committee's plan to require local admission forums to report annually to the schools commissioner and LEAs to report on their schools social mix - the so-called benchmark - is also said to have found favour.

Part of the trouble in Labour's anguished search for a compromise lies in different priorities which delegations detect when they visit the DfES and when they see Mr Blair's education adviser.